Anuj Puri, Chairman of Anarock Property Consultants says, "As far as real estate is concerned, the budget had a few hits and several misses."
The Union Budget 2019-20 is out and the real estate industry that was looking at it with lots of hopes seems satisfied too. While they were hoping a lot more, but claim that the balance in the budget is a good sign. They all say affordable housing will get a big boost.
Anuj Puri, Chairman of Anarock Property Consultants says, "As far as real estate is concerned, the budget had a few hits and several misses. Infrastructure stayed at the top of the government’s agenda. This is, of course, significant since infra development is one of the main propellers for economic growth and real estate benefits both directly and indirectly."
"Most sectors - including real estate - stridently sought concessions to kick-start stagnant consumption and investments. Steering the country out of the stranglehold of economic slowdown and creating employment were also high on the priorities list. As expected, affordable housing under the PMAY scheme (also a critical employment generator) got a boost."
The government announced major tax benefits that will help stimulate demand for affordable housing. Interest deduction up to Rs 3.5 lakh for affordable housing (priced <INR 45 lakh) as against Rs 2 lakh earlier will now be available until March 31, 2020. This can help attract first-time homebuyers. Further, nearly 1.95 crore houses are proposed to be provided to eligible beneficiaries under PMAY-Grameen between FY20 to FY22.
The FM underscored that the completion of houses that previously required 314 days/house in 2015-16 has come down to 114 days since 2017. If so, the target of Housing for All certainly looks a bit more achievable.
Dr Niranjan Hiranandani, National President Naredco said, "The government’s idea to provide affordable housing will be a possibility in almost all the cities except Mumbai where there is a paucity of land. I believe that the additional incentive of Rs 1.5 lakh on interest on loans borrowed under the affordable housing would give a boost to the real estate sector further. The initiative to promote rental housing and housing for all by the year 2022 would be highly successful."
Nayan Shah, President of CREDAI-MCHI, feels that RBI being asked to again regulate the Home Loan sector including the HFCs is a welcome move.
Abhilash Pillai, Partner, Cyril Amarchand Mangaldas says, "The FM has announced a proposal to set up extensive freight corridors across the country. This will certainly boost the warehouse industry. Additionally, there is a proposal to introduce new Manufacturing, Repair and Operate (MRO) industry. This will indeed increase the demand of industrial/commercial real estate assets."
Satish Magar, President, CREDAI Nationa says that it is heartening that CREDAI’s long-standing proposals to reform archaic rental laws and promote public housing on government land figure among the immediate policy agenda outlined by the finance minister.
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